Feb 19, 2008

The IRS has done a great job of synthesizing the recently passed tax rebate into a Q&A that everyone can follow. In short, it can be summarized as follows:

1. You need to file a tax return for 2007 to receive the benefit of the tax rebate. Even those who do not normally have to file2. It is a maximum of $600 per individual, $1200 if married filing jointly, and $300 for each child that is a qualifying child with a social security number3. The rebate phases out for adjusted gross income over $75,000 for individuals and $150,000 for couples filing jointly4. The IRS will automatically send you your rebate via the method you select on your 2007 tax return (i.e. by mail or direct deposit)5. The IRS will start sending the rebates at the end of May, 20086. If you owe tax debt, the IRS will keep the rebate to pay your taxes.

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